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“The Terminator” uses Strategic Sourcing for cost savings


Arnold Schwarzenegger is not exactly the first name one would associate with Strategic Sourcing… But in California, the first wave of their strategic sourcing initiative is producing savings of almost 20%… “total cost of ownership (TCO)being “Terminated….?”

Strategic Sourcing Saves Millions for California Taxpayers
The California Strategic Sourcing Initiative scored its first big win Wednesday, landing the state a renegotiated contract for office supplies.
The renegotiated contract is projected to save roughly $9 million between now and July 2006, when it expires. The state successfully leveraged its buying power to achieve an 18-19 percent reduction in the prices it pays today for the same goods….
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